27 Apr The Best Deal on Energy Costs with District Buying Power
Washington, D.C. has demonstrated its commitment to reducing greenhouse gases and becoming carbon neutral. To small and medium business owners in the district, this often means straining budgets on measures to save energy usage. Sure, using less energy is the best way to save energy costs and it is a smart long-term investment, but the last year has stretched budgets to their limits for these smaller entities. Recently, the District of Columbia Department of Energy & Environment (DOEE) announced a new program that will benefit stakeholders by providing a way to reduce expenditures on energy without an investment. What is the next best way to save money on energy? The answer, of course, is to pay a lower price.
The District Government has partnered with Albireo Energy to create and operate District Buying Power. The program will be modeled on the long-term successful city endorsed programs, Boston Buying Power and Philly Buying Power, which have operated for 10+ years in those cities.
A member of District Buying Power will get better rates on their electric supply, have a partner that will manage energy procurement, and access to green energy, benchmarking compliance, budgeting, and energy tracking tools.
Deregulation has made the choice of supplier possible. Since deregulation commenced, it has been reported that 60-80% of energy consumers purchase their energy from a supplier that is not the local utility. Selecting a third-party supplier over the default utility offering can be beneficial because suppliers have the power to make long-term contracts with locked-in lower prices. A locked-in fixed cost will allow for predictable budgets. There are many suppliers in the market that are offering deals with complex structures making it difficult to decipher which would be the best for your business. District Buying Power uses transparent platforms and the most competitive bidding process.
Advantages of District Buying Power
Once a company has signed up with the program, they become part of a larger group of businesses. As an energy broker, Albireo will watch the market trends and purchase energy in bulk to obtain the lowest prices. District Buying Power will use the energy futures market to make purchases during lows and also negotiate long-term contracts which result in lower pricing. With their market expertise, District Buying Power will take the stress out of what deal to choose and unpredictable energy costs. The delivery company in D.C., PEPCO, will still provide the service, the poles and the wires to get the electricity to your business.
Buying your own energy requires dedicated time and knowledge of market trends and suppliers. A single entity also does not have the advantage of bulk prices. Albireo uses a twenty-minute energy auction where suppliers will bid to win the contract for the energy buying group. The auction is designed to encourage suppliers to provide lower prices to win the bid and provide the best deal for the energy group.
Philly and Boston Buying Power Programs
The District Buying Power program will be modeled after the Philly and Boston Buying Power programs which have been in place for over ten years. Albireo Energy has managed these highly successful programs and has been selected to manage the District program as well. These programs boast a 97% retention rate and have saved thousands of energy dollars for their members. Members also gain access to tools for compliance reporting, monitoring, and analysis for energy usage.
With the strain that the last year has placed on small and medium-sized businesses, this program is a welcome relief. It is expected to save partners 10-20% over standard utility rates. It is a simple process to get involved. Don’t wait, start saving with District Buying Power now.